VOICE OF THE PEOPLE (letter)

Electricity costs

March 20, 2007|By Jerry Cavender

New Lenox — What's the big deal on pricing electricity? Why not pay the provider what it costs, with a profit added on above costs? Commonwealth Edison either produces the electricity or buys it from other providers.

Take the home-produced volume and add purchased volume, then determine a unit cost for the product.

At this point determine the cost to distribute the product at a cost per unit.

The next step is to determine the distribution cost per unit.

Add a profit to the fuel and distribution costs and you have a fair unit price for ComEd's electricity.

Only one unit cost would be needed, as each customer would have to pay for any special equipment required to service him or her for unusual volume, location, etc.

Any maintenance cost would be absorbed in the distribution costs, with any expansion or upgrading to be covered by bonds, with the bond servicing cost to also be absorbed in the distribution costs.